If you are a one-time frame trader, you are like the one-trick pony. As soon as another pony comes along with two tricks, the one-trick pony can’t compete. In trading, one-time frame active traders simply can’t compete with those who view and quantify the markets entire supply and demand picture.
Often I hear active traders talk about the time frames they look at when they trade. I hear many different things like “I trade off of a 2 minute chart, I like the 466 tick chart,” and so on. When I ask them what other time frames they look at, I can pretty much tell if they are profitable or not and here is how. For those who trade using JUST the small time frames, I have yet to see anyone make consistent profits doing that. For those who trade using the smaller time frames and also look at the larger time frames, that is a recipe for profits assuming you do it right.
You may have the best buy setup you have ever seen on a 5 minute chart but if that is anywhere close to larger time frame supply, that buy setup is not likely to work. Conversely, you may have the “picture” of what appears to be a very high probability sell setup on the 15 minute chart but if that is anywhere near… Continue Reading
